Introduction of Security Charges for Passengers at Airports in Malaysia

21 December 2006

Subang, 21 December 2006 - Malaysia Airports would like to announce the introduction of passenger security charges effective January 15, 2007 at all
airports operated by the Group in Malaysia.

The collection of passenger security charges is to be carried out pursuant to Regulation 170A of the Civil Aviation (Amendment) Regulations 2006. The
Regulation states that a security charge shall be payable in respect of any person boarding an aircraft carrying passengers for hire or reward at rates as
follows:

RM3.00 for domestic destinations

RM6.00 for international destinations

The passenger security charge will be collected together as part of the cost of ticket, similar to the current passenger service charge collection
procedure.

The security charge is applicable for all tickets issued on and after January 15, 2007 for travel on or after January 15, 2007. Passengers who have bought
the tickets before January 15, 2007 for travel on or after January 15, 2007 are not required to pay the security charge.

It is the responsibility of airlines to make collection and payment of security charges for all flights commencing from January 15, 2007, for ticket
purchases done on or after January 15, 2007.

Security charges became necessary after the September 11, 2001 incident when airports had to significantly tighten security enforcement and procedures.

Many airports around the world began to levy the security charge immediately after the September 11, 2001 incident. However, for Malaysia, the additional
cost of these enhanced security measures has so far been absorbed by the airport operator.

The security charge of RM 6.00 for international passengers and RM 3.00 for domestic passengers is lower in comparison with other airports in the world.